Tuesday, 30 June 2015

Complaint to the FRC about Caledonia Investments

So far no-one has come back and said I'm talking rubbish about Caledonia Investments' failure to disclose political donations in its annual report. The company's AGM is coming up in two weeks, and the first item on the agenda is the approval of the annual report. I am concerned that shareholders are being asked to approve an annual report that may not comply with company reporting regulations.
As such, I thought the best thing was to ask the FRC to investigate. I sent them the email below last week. I will post an update when I hear back.
I would like the FRC to investigate whether Caledonia Investments has met the requirement to disclose political donations as set out in the Large & Medium Sized Company Reporting Regulations.
As I understand it, these regulations require the disclosure in the director's report of political donations of more than £2000 in aggregate made in any financial year.http://www.legislation.gov.uk/ukdsi/2008/9780110806303/schedule/7
According to the Electoral Commission register, Caledonia Investments PLC made two donations of £2000 - one in December 2014, and one in March 2015.http://search.electoralcommission.org.uk/English/Donations/C0144490http://search.electoralcommission.org.uk/English/Donations/C0194204
I cannot see any reference to these donations in the company's annual report covering the year to end March 2015, although in aggregate they are greater than the amount above which disclosure is required.http://www.caledonia.com/files/file/view/id/863
Therefore I think it is possible the company has failed to meet reporting requirements.
This is time sensitive as the company's AGM takes place on 16 July and the first item is the vote to approve the annual report. If the company has failed to meet reporting requirements I am not sure shareholders should vote in favour of the resolution to approve the annual report,http://www.caledonia.com/files/file/view/id/854

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